A Setback for States in Microsoft Case

An economist testifying for nine states seeking tough antitrust sanctions against Microsoft Corp. balked at supporting the states’ key demand for a stripped-down version of the Windows operating system.

Carl Shapiro, a former Justice Department official, backed tough measures to protect competition in technologies that have emerged since the trial began, but declined to endorse parts of the states’ proposal.

Remedies should restore competition by preventing Microsoft from dominating new technologies that threaten the Windows monopoly it was found to have illegally protected, Shapiro said.

He was the 15th witness called by the states.